This problem set uses Southwest for ALL questions. To start, go to its investor relations page and get its latest annual report $(10-$K$).$ Make sure to use the last $3$ full years!

All your responses will be in the YELLOW areas only!

$1.$ Using the firm's financials:

a$.$ Fill the income statement $($in million $$).$ Expenses without their own line should be grouped under "All other expenses". The net income lines must tie using formulas

b$.$ Create the common size income statement $($as a $\%$ of operating revenues for that year$)$

c$.$ Show year$-$on$-$year $($YoY$,$ in $\%)$ growth

d$.$ What happened to the profit margins?

e$.$ What are the actual tax rates? EPS?

$2.$ Using the operating stats, what is the YoY growth rate for:

a$.$ Yield?

b$.$ Operating expense per available seat mile $($CASM$)?$

c$.$ Revenue passenger miles $($RPMs$)?$

d$.$ Fuel price $($$$/$gallon$)?$

e$.$ What factors, other than the pandemic, are affecting margins the most?

$3.$ Using the firm's balance sheets, show:

a$.$ Balance sheets as shown $($in million $$)$; show only net property & equipment lines.

b$.$ Common size balance sheets.

c$.$ Are there any outliers in the balance sheets that you think merit mentioning?

d$.$ For these years, what is the net working capital position? Current ratio? Quick ratio? Days receivable? Return on assets $($ROA$)?$ Return on equity $($ROE$)?$ What is the latest p$/$e ratio? $($use Yahoo Finance$)$

$4.$ Using the Statement of Cash Flows, which items stand out to you and why?